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Herbert Smith has advised Huabao International, a leading flavours and fragrances company in the PRC, on the acquisition of Wealthy King Investments Limited from Longkey Limited of approximately HK$870 million (US$112 million).

Wealthy King is wholly and beneficially owned by Longkey.  

In term of sales, Huabao International Holdings Limited is the tenth largest flavours and fragrances company in the world, with a total market capitalisation of over HK$20 billion (US$2.6 billion). Huabao has established a presence in Shanghai, Yunnan, Guangzhou, Wuxi and Qingdao.

Corporate partner Tom Chau led the transaction. He was supported by Hong Kong-based senior associate Sherry Lai. 

Tom Chau commented:

"We are pleased to have been involved in this acquisition. The successful close is a further demonstration of our strong competence in dealing with M&A transactions. We value our long-standing and strong relationship with Huabao, as this is the third acquisition we are involved in, and we will continue to deliver high quality service to them."

Deutsche Bank AG was the financial adviser in the acquisition. 

Notes to editors

• Herbert Smith has advised on a number of major transactions in the FMCG and related sectors, including:
  1. Huabao International Holdings, a leading flavours and fragrances company in the PRC, on the HK$3.99 billion (US$512 million) very substantial acquisition of the entire issued share capital of Chemactive Investments from its controlling shareholder
  2. Huabao International Holdings on the HK$652 million (US$84 million) acquisition of the entire share capital of Win New Group from their controlling shareholder. DBS Asia Capital and Deutsche Bank acted as the financial advisers
  3. Youngor Group, China's biggest shirt company, in relation to the US$120 million acquisition of a 100% interest in Xin Ma Apparel International and Smart Apparel Group from Kellwood Company, a leading US marketer of apparel and consumer soft goods. This was the first major overseas acquisition by a Chinese clothing manufacturer
  4. China Paradise Electronics on its HK$5.2 billion (US$668 million) agreed takeover by GOME Electrical Appliances, to become the largest home appliances and consumer electronics retailer in mainland China.  This deal was groundbreaking in that it was the first time two PRC retailers merged through the use of an exchange offer in Hong Kong. This complex takeover required innovative legal and regulatory advice. The takeover also involved the approval of the Ministry of Commerce in the PRC for anti-monopoly purposes
  5. a European food manufacturer on the structuring of a RMB1 billion (US$132 million) three-phase joint venture project in China
• Herbert Smith LLP is an international legal practice with 1200 lawyers (including over 200 partners) and a network of offices in Europe and Asia.  The firm has over 300 staff in Asia and 180 lawyers in offices in Bangkok, Beijing, Hong Kong, Shanghai, Singapore, Tokyo and an associated office in Jakarta. www.herbertsmith.com
• For further information please contact Tim Wright, Head of Business Development, Asia on +852 2101 4665 or email tim.wright@herbertsmith.com
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